THS.VN WACC - Weighted Average Cost of Capital
The WACC of Song Da Thanh Hoa JSC (THS.VN) is 7.6%.
| Range | Selected | |
| Cost of equity | 7.3% - 10.7% | 9% |
| Tax rate | 20.0% - 20.2% | 20.1% |
| Cost of debt | 7.0% - 10.3% | 8.65% |
| WACC | 6.2% - 9.1% | 7.6% |
| Category | Low | High |
| Long-term bond rate | 2.7% | 3.2% |
| Equity market risk premium | 9.5% | 10.5% |
| Adjusted beta | 0.48 | 0.66 |
| Additional risk adjustments | 0.0% | 0.5% |
| Cost of equity | 7.3% | 10.7% |
| Tax rate | 20.0% | 20.2% |
| Debt/Equity ratio | 1.95 | 1.95 |
| Cost of debt | 7.0% | 10.3% |
| After-tax WACC | 6.2% | 9.1% |
| Selected WACC | 7.6% | |
| Debt/Equity | Unlevered | |||
| Peers | Company Name | ratio | Beta | beta |
| THS.VN | Song Da Thanh Hoa JSC | 1.95 | -1.01 | -0.39 |
| 501477.BO | Muller and Phipps (India) Ltd | 0.05 | 0.09 | 0.09 |
| 537524.BO | Viaan Industries Ltd | 1.08 | 0.58 | 0.31 |
| 539220.BO | Mishka Exim Ltd | 0 | 0 | 0 |
| 539884.BO | Darshan Orna Ltd | 0.29 | 0.33 | 0.27 |
| 5LE.SI | Sitra Holdings (International) Ltd | 0.01 | 0.15 | 0.15 |
| 7519.T | Goyo Intex Co Ltd | 3.15 | 2.05 | 0.58 |
| BDB.VN | Binh Dinh Book and Equipment JSC | 0.46 | -0.29 | -0.21 |
| QST.VN | Quang Ninh Book and Educational Equipment JSC | 0.55 | 0.41 | 0.29 |
| VASA.NS | Vasa Retail and Overseas Ltd | 9.14 | 0.72 | 0.09 |
| Low | High | |
| Unlevered beta | 0.09 | 0.19 |
| Relevered beta | 0.22 | 0.49 |
| Adjusted relevered beta | 0.48 | 0.66 |
THS.VN's CAPM model and how its cost of Equity is calculated
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for THS.VN:
cost_of_equity (9.00%) = risk_free_rate (2.95%) + equity_risk_premium (10.00%) * adjusted_beta (0.48) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.